What does an HMO stand for?

An HMO stands for Health Maintenance Organization. This type of managed care organization provides health insurance coverage through a network of doctors, hospitals, and other healthcare providers who agree to offer services to members at reduced costs. The primary goal of an HMO is to promote preventive care and wellness, minimizing the need for more complex and expensive treatments by focusing on regular check-ups and managing chronic conditions effectively.

Members typically select a primary care physician (PCP) who coordinates their health care and provides referrals to specialists when necessary. By doing so, HMOs aim to reduce overall healthcare costs and improve health outcomes by promoting comprehensive and continuous care among their members.

Understanding the structure and function of an HMO is crucial in the broader context of healthcare management and insurance, where different types of organizations (like PPOs and EPOs) operate with varying levels of flexibility and cost-sharing arrangements.